VA797H-17-D-0024-128.pdf

DEPARTMENT OF VETERAN AFFAIRS

Office of Acquisition and Logistics

National Acquisition Center P.O. Box 76

Hines, IL 60141

(1) Identification of the agency and the contracting activity, and specific identification of the document as a “Justification for an Exception to Fair Opportunity.”

This Justification for an Exception to Fair Opportunity is in accordance with FAR 16.505(b)(2)(i)(C) – Logical Follow-on. This justification is on behalf of VISN 17, VA North Texas Health Care System - Dallas VA Medical Center and will be executed by the Department of Veterans Affairs National Acquisition Center (NAC – 36A797) located in Hines, IL.

(2) Nature and/or description of the action being approved.

This activity intends to issue a sole-source delivery order against Indefinite Quantity contract VA797H-17-D-0024 awarded to General Electric (“GE”) to upgrade from Discovery MI DR PET/CT to Discovery MI 20cm 5-Ring PET/CT scanner.

(3) A description of the supplies or services required to meet the agency’s needs (including the estimated value).

The Discovery 5-ring MI PET scanner has a higher sensitivity and greater coverage than the existing analog Discovery MI DR scanner. Higher sensitivity and more coverage can result in faster acquisitions, which requires less time on table for the patient, and can ultimately lead to the ability to scan more patients per day. There is also less injected dose which results in lower dose exposure to patient and PET technologist, and better ability to see small lesions which can result in seeing disease earlier and may have a positive impact on treatment. The DMI 5-ring system improves sensitivity by 13.5 (cps/KBq) and coverage by 9.3cm FOV. The Dallas VA already has a 5-Ring Discovery MI system so upgrading its Discovery MI DR to the same digital 5-Ring scanner platform, and thereby having comparable sensitivities and axial fields of view/coverage will allow consistency of operation by its technologists as well as consistency of scan results in terms of image quality and quantification between its scanners. Training will also be provided to local Biomedical staff as part of this delivery order. The total estimated value of this order is $2,100,000.00.

(4) Identification of the exception to fair opportunity (see 16.505(b)(2)) and the supporting rationale, including a demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires use of the exception cited. If the contracting officer uses the logical follow-on exception, the rationale shall describe why the relationship between the initial order and the follow-on is logical (e.g., in terms of scope, period of performance, or value).

The upgrade will be issued on a sole-source basis in accordance with FAR 16.505(b)(2)(i)(C) in the interest of economy and efficiency because it is a logical follow-on to an order already issued under the contract which was competed amongst all contract holders. GE, the original equipment

Justification for an Exception to Fair Opportunity FAR 16.505(b)(2)(i)(C) – Logical Follow-on http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/16.htm#P464_78690 manufacturer (OEM) of the existing PET/CT system at the Dallas VAMC, is the only vendor that has the ability to upgrade the equipment and software to a 5-Ring scanner platform. The equipment was originally procured in 2014 under delivery order VA797H-13-J-0630 against contract V797P-6019, and installation was completed in 2017. This upgrade will take the existing system from analog to digital and significantly reduce the dose and patient exposure during studies. The upgrade will replace major components while keeping the gantry in place, resulting in little construction/installation costs. The alternative to this approach would be to purchase an entirely new system, which would cost the government an estimated $3 Million for equipment and installation and result in several months of delays for procurement, delivery, installation, and training on the new system. The cost avoidance and reduced implementation time significantly benefit the government.

The OEM is the only Contractor able to provide the upgrade due to the proprietary nature of the items to be procured. The OEM is the only organization capable of owning trade information about the system and therefore, is the only one qualified to provide and perform the upgrade.

(5) A determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable.

The contracting officer for the resultant order has determined the prices offered to be fair and reasonable for this justification for an exception to fair opportunity. All items are priced at or below the contract price, which was previously determined fair and reasonable at time of contract award, and there have been no significant changes to the industry or market conditions that would result in changes to the reasonableness of the underlying contract prices.

(6) Any other facts supporting the justification.

Upgrading the current PET/CT platform to a digital platform will improve image quality and resolution, acquisition time, and dose reduction while saving the VA from additional costs associated with the purchase and installation of an entirely new system.

(7) A statement of the actions, if any, the agency may take to remove or overcome any barriers that led to the exception to fair opportunity before any subsequent acquisition for the supplies or services is made.

All prospective delivery orders are competed among all contract holders. Once an order is placed for proprietary equipment, it is generally not possible to compete follow-on acquisitions for upgrades because the system to be upgraded is proprietary in nature. Future requirements will be handled on a case by case basis and all attempts will be made to provide fair opportunity to all schedule holders when appropriate.

(8) The contracting officer’s certification that the justification is accurate and complete to the best of the contracting officer’s knowledge and belief.

By signing this justification, the Contracting Officer hereby certifies that the justifications are accurate and complete to the best of their knowledge.

(9) Evidence that any supporting data that is the responsibility of technical or requirements personnel (e.g., verifying the Government’s minimum needs or requirements or other rationale for an exception to fair opportunity) and which form a basis for the justification have been certified as complete and accurate by the technical or requirements personnel.

By signing this justification, the requiring activity hereby certifies that the justification is accurate and complete to the best of their knowledge.

(10) A written determination by the approving official that one of the circumstances in (b)(2)(i)(A) through (F) of this section applies to the order.

Based on the information contained herein, a determination has been made that this requirement meets the exception at FAR 16.505(b)(2)(i)(C) as it is a logical follow-on to an order already issued under contract. All awardees were given a fair opportunity to be considered for the original order.

CERTIFICATION AND APPROVAL

TECHNICAL/REQUIREMENTS CERTIFICATION:

Pursuant to FAR 16.505(b)(2)(ii)(B)(9), I certify that any supporting data that is my responsibility and which forms a basis for the justification is complete and accurate to the best of my knowledge and belief.

Clarice Holden

VISN 17

Chief Biomedical Engineer

CONTRACTING OFFICER CERTIFICATION:

Pursuant to FAR 16.505(b)(2)(ii)(B)(8), I certify that the justification is complete and accurate to the best of my knowledge and belief.

Michael A. Sands Contracting Officer VA National Acquisition Center – Hines High-Tech Medical Equipment Ordering Division

Reagan P. Criddle VA National Acquisition Center – Hines Chief, High-Tech Medical Equipment Ordering Division

Craig Robinson Competition Advocate National Acquisition Center – Hines Associate Executive Director Pursuant to FAR 16.505(b)(2)(ii)(C)